Market Recap: DJIA Tests 10,700 and Fails After FOMC's Cautious Statement - Aug 10,2010

Market Recap: DJIA Tests 10,700 and Fails After FOMC's Cautious Statement:

"Traders were bracing for the worst ahead of today's highly anticipated decision on monetary policy from the Federal Open Market Committee (FOMC). The Dow Jones Industrial Average (DJIA) spent most of the session sitting on a triple-digit deficit, thanks to downbeat data on U.S. productivity and Chinese imports. The mid-afternoon Fed announcement helped stocks erase some of their losses, with the central bankers reiterating that interest rates will remain at record-low levels for an extended period -- and unveiling plans to invest in longer-term U.S. Treasurys. However, it was hard to overlook the gloomy bottom line of the FOMC statement, with the group noting that the economic recovery is progressing much more slowly than previously expected. As a result, stocks finished the day off their session lows, but still firmly in negative territory -- where they kept company with the greenback. 'The dollar dropped after the Fed said they would buy longer-term government debt to help the economy,' explained Senior Technical Strategist Ryan Detrick. 'This was good news for the euro, as it soared after the Fed decision.'"